Quebecor Inc. Class A · TSX:QBR.A
Quebecor Inc. Class A — CIBC 8th Annual Eastern Institutional Conference 2009
29 slides from Quebecor Inc. Class A's conference presentation, Sep 23, 2009
Slide 1: CIBC 8th Annual Eastern Institutional Conference
CIBC 8th Annual Eastern Institutional Conference Montreal September 23, 2009
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements, which are subject to known and unknown risks and uncertainties that could cause the Company's actual results to differ materially from those set forth in the forward-looking statements. These risks include changes in c
Slide 3: Key Highlights
Key Highlights Strong Brand Names with leading Market Positions Differentiated Bundled Product Offerings Proven Track record of Managing Growth Stable and Diversified Cash Flow Generation Experienced Management Team /3
Slide 4: A Fully Integrated Media & Telecom Company
A Fully Integrated Media & Telecom Company (C$ in millions) 54.7% 45.3% LTM Revenue : $3,746 Inc. LTM EBITDA : 1,174 51% Economic 100% 100% 100% 99% Voting #1 pay television operator in Largest newspaper Largest French language Book Publishing Quebec; #3 cable operator publisher in Quebec and broadc
Slide 5: An Integrated & Diversified Financial Profile
An Integrated & Diversified Financial Profile LTM Revenue LTM EBITDA Newspapers Newspapers Cable 16.4% 29.3% 74.5% Cable 50.5% Leisure and Entertainment 2.2% Broadcasting 6.1% Corporate & Other (2) Leisure and 0.8% Entertainment 8.2% Broadcasting Corporate 11.8% & Other (1) 0.2% Revenues = $3.7 bill
Slide 6: Vidéotron
ee = VIDEOTRON A Quebecor Media Company
Slide 7: Leading Canadian Telecommunications Operator
Leading Canadian Telecommunications Operator Cable TV Internet Telephony Wireless Telephony Wireless - 1,733K basic subs - 1,110K cable modem - 935K subs as of - 73K lines as of June (990K digital subs) as subs as of June 30, June 30, 2009 30, 2009 of June 30, 2009 2009 - Achieved penetration - Comp
Slide 8: Strong Financial Performance
Strong Financial Performance Robust new service deployment, focus on customer service and strong operating leverage have led to solid financial performance Reported Revenue Reported EBITDA $1,891 $2,000 $1,000 $1,804 $875 1,800 900 % $797 1,600 15 $1,553 800 = R % G 22 1,400 CA $1,310 700 = C$ mil
Slide 9: Growing Basic Cable Customer Base
Growing Basic Cable Customer Base Vidéotron exhibits the highest growth in the industry in terms of basic cable customers Vidéotron has realized 15 consecutive quarters of positive net adds and improved momentum since the launch of its telephony service Number of Basic Cable Customers 125% 123%
Slide 10: Digital Services Subscriber Growth
Digital Services Subscriber Growth Vidéotron is the fastest growing Canadian cable digital TV and cable modem Internet service provider Cable Digital TV Customers Cable Internet Customers 900% 450% Vidéotron Vidéotron Subscribers as percent of base period Subscribers as percent of base period 800%
Slide 11: Strong Residential Telephony Momentum
Strong Residential Telephony Momentum Vidéotron has positioned itself as a major player in Canadian Telecom since launching VoIP in 2005 Penetration of Basic Cable Subs Bundling Effect 60% 61% lift experienced (more than one 54% 50% 52% new product) in Q2-2009 50% 47% 45% 38% new customers in
Slide 12: Bundling has Increased ARPU
Bundling has Increased ARPU Strong demand for bundled offerings and a superior customer experience resulted in improved ARPU Total Subscriber Base – Residential Clients Net Total ARPU 100% $90 3% $85 Launch of 90% $80 Telephony % 80% 41% 14 $75 = 70% GR $70 CA 09 ARPU (C$) 60% $65 - 05 50% $60 24%
Slide 13: Acquisition of Advanced Wireless Services Spectrum
Acquisition of Advanced Wireless Services Spectrum Acquired, for a cost of $555 million, the entire 40 MHz of spectrum set aside for new entrants in Québec 20 MHz in Eastern Ontario, 10 MHz in Toronto and 50 MHz in some regions in the province of Québec Expecting to spend between $800 million
Slide 14: Market Potential for AWS
Market Potential for AWS Canada's penetration of wireless service lags relative to other countries Canadian operators’ profitability in top tier Québec’s penetration is below Canadian average /14
Slide 15: Sun Media
~~ _-SUN MEDIA A Quebecor Media Company canoe) inc.
Slide 16: Nationwide Presence and Strategically Clustered
Nationwide Presence and Strategically Clustered Nationwide presence covering key markets offers national advertising and distribution solutions Clustering provides significant cost efficiencies and opportunities for bundled advertising packages #1 newspaper publisher in Canada when including O
Slide 17: Industry Leading Margins
Industry Leading Margins Effective cost containment initiatives have led to industry leading margins Additional initiatives underway, including the integration of Canoe, will further benefit our News Media segment Peer Comparison (LTM) 22% 19.7% PublishingEBITDAMargin 19% 18.1% 16.8% 16.0% 16% 1
Slide 18: Quebecor Media Network
Quebecor Media Network Inserts distribution and printing entity created, pooling capabilities of distribution subsidiaries and state-of-the-art printing plants Extensive network of weeklies and dailies covering most major Canadian markets A one-stop shop solution for advertisers The new unit
Slide 19: TVA
— Cali tva.canoe.ca compagnie de Quebecor Media
Slide 20: Leading Market Share
Leading Market Share French-language TV Market Share Financial performance Consistently delivering strong market share despite increased fragmentation Revenues (C$ million) 6M-2009 6M-2008 YoY (%) Other 6% Television 181.9 169.9 7.0% Publishing 36.7 39.9 -7.9% TVA 28% Distribution 4.5 9.4 n.m. Inter
Slide 21: Other Businesses
Other Businesses
Slide 22: Other Businesses
Other Businesses Divisions / Companies Key LTM Stats (C$ M) Commentary Leisure & Entertainment Revenue: $308 LTM revenues decreased $1.4M (-0.5%) EBITDA: $26 Mainly due to the transfer of video on demand operations to the telecommunication segment Strong expansion in the book division’s revenu
Slide 23: QMI's Financial Highlights
QMI’s Financial Highlights
Slide 24: Exhibiting Strong and Steady Growth
Exhibiting Strong and Steady Growth Revenue EBITDA $1,174 $4,000 $1,200 $3,746 $3,730 $1,120 3,750 1,100 3,500 $3,366 9% 1,000 % = $964 13 R C$ millions 3,250 = G R C$ millions A AG C $3,011 900 C 3,000 $803 $2,703 800 2,750 $734 $697 $2,462 700 2,500 $2,298 $612 2,250 600 2,000 500 2003 2004 2005 2
Slide 25: Videotron - High Growth Profile
Videotron - High Growth Profile Videotron’s high growth profile remains a significant value driver for QMI Adjusted LTM EBITDA growth 320% Videotron 300% Rogers EBITDA as percent of base period 280% Shaw 260% Cogeco 240% 220% 200% 180% 160% 140% 120% 100% 80% Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 20
Slide 26: Cash Flow Generation
Cash Flow Generation QMI Consolidated Free Cash Flow QMI’s intense focus on profitable 400 growth, cost containment and $350 $360 opportunistic refinancing has resulted in 300 $291 improvements in EBITDA and Free $255 $ millions 250 Cash Flow 200 $192 $146 $148 Press investment projects at News
Slide 27: Constant Reduction of Leverage
Constant Reduction of Leverage Solid EBITDA growth and repayment of debt from free cash flow has allowed significant improvement of leverage statistics QMI’s Consolidated Leverage Ratio 8.0x 6.9x 7.0x 6.0x 5.5x 5.2x 5.0x 4.5x 4.3x 4.1x 3.8x 3.8x 3.7x 4.0x 3.0x 2.0x 1.0x 0.0x 2001 2002 2003 2004 20
Slide 28: No significant Maturities Over the Next Few Years
No significant Maturities Over the Next Few Years QMI’s Consolidated Debt $1,400 $1,308 1,200 1,000 $838 $802 C$ millions 800 $702 600 400 $217 200 $157 $68 $52 $20 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Notes: Excluding debt of 51% owned TVA Group US$ debt converted at exchange rates u
Slide 29: Quebecor
— QUEBECOR.
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